Fiduciary duty ignored

Court prohibits ex-employee from continued solicitation of his former employer’s customers
|Canadian Employment Law Today

After 14 years Jonathan Soberman resigned from his position as general manager with KJA Consultants Inc. He provided his employer with one month’s notice to be effective Sept. 30, 2001.

KJA was concerned about Mr. Soberman’s impending departure. Mr. Soberman was a key employee with considerable client contact. He had intimate knowledge of and personal relationships with KJA’s customers. He was also familiar with KJA’s internal working such as pricing and overhead. There was no obvious replacement for Mr. Soberman and this left KJA in a vulnerable position.

Upon receiving his notice of resignation, KJA’s lawyer wrote to Mr. Soberman explaining to him in detailed terms what was expected of him as a departing employee with a fiduciary responsibility. Mr. Soberman was advised that he should not contact any customers of KJA for a period of 12 months after the end of his employment with KJA.